A00889 SFD Annual Report.indd - Scotland Food and Drink

chief executive’s report2“The mission of ScotlandFood & Drink is to deliveran industry worth £10Bn by2017. Four priority areashave been identified that arecritical to support this growth:Reputation, Innovation,Collaboration and Skills”We have reached the milestone of the firstformal Year End for Scotland Food & Drinkand looking back over 12 months, whichhave been the catalyst for some real changein our industry, I am very proud of whatour members, the Executive Group, ourstakeholder partners and the ScotlandFood & Drink team have achieved.The Executive Group, in particular, hasplayed a key role in ensuring Scotland Food& Drink has the support and commitmentrequired to define goals, agree a strategyand commission working groups which haverelevance across all sectors.We have aligned behind a common missionand vision. We have agreed priority areasto focus our efforts. And we have set upworking groups to initiate actions which willbring significant change to our industry.Running events and exhibitions under theScotland Food & Drink banner has shownthat our industry is coming together and,in doing so, can create a bigger, consistent,complimentary impact that is gainingrecognition from customers and consumers.We have developed a membership basefrom all sectors, from the largest companiesto some of the smallest, from across thecountry, committed to Scotland Food &Drink. Members also include companiesfrom supporting industries – financial, legaland HR who provide additional insight to ourworking groups and can also deliver benefitsto other members.Growing our membership base remainsa priority for the organisation – not only toensure our financial future and to allow usto broaden our range of member benefitsbut also to enable us to speak authoritativelyon behalf of the industry.As part of its focus on priority industries,Scottish Enterprise has created IndustryAdvisory Boards to help shape their responseto supporting the growth of these six keysectors. For the food and drink industry, ourBoard has been pleased to accept this role.Looking towards 2009, Scotland Food &Drink has a unique opportunity to capitaliseon the mutually supporting priorities of theScottish Government and the industry.The Government, in its food and drinkpolicy, have asked Scotland Food &Drink to lead the thinking and deliver keyinitiatives of the Sustainable EconomicGrowth work-stream.The key themes of the work-stream synergisewith our working groups: Reputation,Collaboration, Innovation and Skills.The Working Groups are populated byover 60 volunteers from across ourmembership and chaired by members ofthe Executive Group. They have definedtheir priorities and areas of focus and aredeveloping plans for implementation ofinitiatives, which not only deliver on the Foodand Drink Policy but also bring substantivechange and benefit to the industry.2008-09 will be a testing year. In our firstyear, we have put the mechanisms andstructures in place – in our second yearwe must deliver results. Growing ourmembership base, developing memberbenefits and delivering the programsthrough our working groups are some ofthe significant challenges we face.The Scotland Food & Drink team is committed,dynamic and enthusiastic about meetingthese challenges head on and in deliveringgreat outcomes. I am delighted to be movinginto the year with a team who time and againhave shown that they are willing to go theextra mile to achieve outstanding results.Scotland Food & Drink has been created bythe industry for the industry and we needyou to be involved. I look forward to workingwith you and benefiting from your support,knowledge and insight to help achieve ourvision of growing the food and drink industryto £10Bn by 2017 and mission to create aninternational recognition for Scotland as a“Land of Food and Drink”.Paul McLaughlinChief ExecutiveSCOTLAND FOOD & DRINK

5innovationScotland is renowned for its“levels of innovation and asa food and drink industrywe need to develop ourcommercialisation focus andget more produts to market”Dr Alan RoweRowett Institute of Nutrition and HealthInnovation in product, processand route to market is essential forScotland to achieve and maintaina leadership position within theglobal food and drink industry. Toachieve this there must be effectivecommunications initiated andthen maintained between industryand academia and the researchcommunity.The creation of a new Food, Drinkand Health Innovation Hub will helpbuild critical commercialisationexpertise within Scotland andimportantly will allow the industryto achieve economic growth throughthe launch of innovative productsin market.To support the creation of the Food,Drink and Health Innovation Hub,there are three priority areas fordevelopment and support.Innovation serviceThis will act as an entry point for companiesseeking support and advice on innovation.This will define and deliver information andsupport to help companies identify andexploit new opportunities.Research networkThis will link, for the first time, the academicand research insititutes to enable thebest combined research outcomes,from fundamental science to real worldimplementation. Again it will offer companiesa single point of entry making it easier forthem to access the information availablewithin this network.Innovation centreThis will become the hub where companiescan access the research network and willbe a physical centre. In addition to beingthe gateway to the innovation network,the centre will also provide fore-sightingand strategy to help the industry identifybig future opportunities and the R&Drequired within Scotland to exploit them.

MOREDUN INSTITUTE< Edinburgh6skillsInvestment in Skills and“Development has always madegood business sense, but nevermore so than now whencommercial competitivenessdemands innovative productsand processes, minimal wasteand lean manufacturing – allentirely dependent on our peoplehaving the best skills andknowledge development”Alistair MacphieChief ExecutiveMACPHIE OF GLENBERVIE LTD

72008-09 business plan target KPIs2008-09 will be a testing year.“In our first year, we have putthe mechanisms and structuresin place – in our second yearwe must deliver results – growingour membership base, developingmember benefits and deliveringthe programmes through ourworking groups”MEMBERSHIP AND INCOME■ Double membership income to £370K.■ Triple membership numbers, justifyingour claim to be the leadership organisationfor the food and drink industry in Scotland.■ Develop sector split of businesses andtarget new members accordingly.■ Achieve a 48:52 public: private sectorfunding split for core costs.■ Secure £350,000 Public Sectorcore funding.■ Membership benefits programme inplace. Survey of members showing 75%are positive about the benefits on offer.New benefits introduced following inputfrom members.■ All members to be contacted at leasttwice per year by Scotland Food & Drink.■ Half the recruitment lead-time from6 months to 3 months.MARKETING &COMMUNICATIONS■ Develop synergies in CommunicationsGroup.■ Undertake baseline research to determinelevels of awareness of Scotland Food &Drink with Stakeholders, Members, foodand drink industry and wider businesscommunity.■ Implement targeted communicationsand PR plans to increase knowledge/interaction with Stakeholders, Membersand the wider industry.■ Execute the AGM and supportingAnnual Report.■ Launch a re-branded, restructuredcorporate website. Create engaging contentand members only premium content.■ Launch a Members’ Benefits Manual andsupporting package.■ Work with RHS on the delivery of 2009Excellence Awards and develop PRstrategy to increase visibility of winners.■ Deliver at least 3 Scottish Pavilions atmajor exhibitions in 2009.■ Design, co-ordinate, launch and executeScottish Food Fortnight 2009.EXECUTIVE GROUP/LEADERSHIPORGANISATION■ Key Initiatives ready for announcementby Cabinet Secretary in March 2009.■ Skills Academy launched.■ Centre of Excellence funding achievedand implemented.■ Innovation Service launched, Networkfunding agreed and launched.■ Export strategy developed andimplemented. UK market penetrationstrategy reviewed, funded andimplemented.■ Executive Group lead the WorkingGroups, managing their performanceand working together to resolve issues.■ Have a presence at major conferencesand events, speaking on at least 10occasions.Paul McLaughlinChief ExecutiveSCOTLAND FOOD & DRINK

8call to action“Scotland Food & Drinkneeds you ...”Within the competitive globalmarket place, standing still is notan option. If Scotland is to stayahead of the competition, respondto increasing consumer demands,meet the challenges affecting ourfarming and fishing sectors andcontribute to sustainable economicdevelopment and climate changeissues, as an industry we need towork differently and proactively todevelop new opportunities for thewhole industry to make us moresuccessful.To drive Scotland to a true leadershipposition on the international stage,our industry has recognised thatto make this happen we need towork differently, become smarterand most importantly we mustcollaborate. This is not a dictate –it is a groundswell of realisationfrom within our own companiesand trade organisations that wemust work together to becomemore competitive.Scotland Food & Drink has enabledthe industry to become responsiblefor its own destiny and our work hasnow begun. We must now tell theworld about our fantastic industryand about the work that we are doing.To those that have taken that initialleap of faith, we thank you for yoursupport and for being a part of thisincredible journey on which wefind ourselves. But we need morecompanies to become involved sowe can further develop and widenthe scope of our activities. Everyfood and drink company in Scotlandhas their part to play and we hopethat those who have not yet joinedwill consider what their role is inhelping to develop our industry.The creation of Scotland Food &Drink is a timely and necessarystep to help the whole industrysecure a profitable and sustainablefuture. We need you to get involved.What do you get if you join?Scotland Food & Drink members can nowtake advantage of a range of benefitsdesigned to make their businesses morecompetitive whilst also saving them money.Members can initially benefit from £1,000worth of services comprising free legaladvice, a consultation with a productdevelopment expert and access to anexperienced sales director to help examineopportunities for developing new markets.Additionally, member companies will alsobenefit from further savings on other services.Access to ExpertsIncluding Marketing Support, Legal Advice,Product Development for Hire, SalesManager for Hire and PR Support.Access to InformationIncludes free and reduced rate access toinformation from IGD and other data sources,Market Intelligence and Grant Finder.Growing MarketsIncludes Meet the Buyer activities.Scotland Food & Drink is a not-for-profitorganisation and therefore we aim tore-invest our membership funds intodelivering a comprehensive range ofbenefits for our member companies.To grow the capability of our industry itis essential that we expand our rangeof benefits and services and continue toattract new members.The Scottish Government has identifiedfood and drink as one of its key priorities interms of economic and cultural importance.Our role in delivering the ‘Economic Growth’work stream of the National Food and DrinkPolicy means that our members, throughinvolvement in one of our four workinggroups, can help shape the future of thefood and drink industry in Scotland.The benefits of becoming a member ofScotland Food & Drink stretch beyond theexpert advice on offer. We also host a rangeof networking and trade events which allowproducers and retailers to interact andengage with new customers.Tel: 0131 524 8640www.scotlandfoodanddrink.orgOur new National Food and Drink Policy and the success“of Scotland Food & Drink will be critical to deliveringeconomic prosperity for the food and drink industry andthe wider Scottish economy.Scotland Food & Drink have a key role to play if we are tomake the most of our nation’s outstanding internationalreputation for food and drink produce.I believe it is important that the industry is fully alignedwith Scotland Food & Drink and is supportive of the role ithas to play in building a successful strategy for sustainableeconomic growth.I would strongly encourage the industry to work closelywith Scotland Food & Drink to help achieve the growth ofthis vital sector to reach £10 billion by 2017”Richard Lochhead MSPCabinet SecretaryRURAL AFFAIRS AND ENVIRONMENT